STIL Contributes 96% Revenue for FY16

STIL Contributes 96% Revenue for FY16

One of the largest manufacturers of value added Melange yarn in India, Sutlej Textiles and Industries Ltd (STIL), promoted by Dr. K K Birla is one‐stop‐shop for all kinds of spun dyed yarn from natural and manmade fibers. Yarn contributed 96 per cent to the revenue while 4 per cent revenue contributed by home textile for FY16.

STIL has 3,77,688 spindles for yarn manufacturing, located at Jammu & Kashmir, Rajasthan and Himachal Pradesh. It also has 6 mn meters per annum capacity of home textile at Damanganga in Gujarat. During FY15 the company acquired Birla Textile Mills, a yarn spinning unit of Chambal fertilizers and chemicals on a slump sale basis for Rs. 232.6 crores.

The expansion plans for its Rajasthan facility (addition of 35.2K spindles) is on track and will be commissioned by Q4 FY17. The company will spend Rs. 270 crores with expected payback period of 4‐5 years.

STIL is gradually expanding its capacity in home textile segment to 9.6 mn meters per annum from 6 mn meters at the end of FY16. The segment will contribute Rs. 225 crores at full capacity with 20 to 25 per cent EBIDTA margins. The company will spend Rs. 350 crores over next two years on expansion at RTM & Damanganga facility and modernization at existing plants.

Apparel and Textile News, Apparel Talk, Indian Apparel